Which change causes a movement along a product's supply curve rather than a shift of the supply curve?
Correct answer: A. A change in the product's own price
- A. A change in the product's own price
- B. A change in the price of raw materials
- C. A change in production technology
- D. A change in the number of sellers
Explanation
A change in the product's own price changes the quantity supplied and causes movement along the existing supply curve. Input prices, technology and the number of sellers shift the entire supply curve because they alter supply conditions at every price.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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